Based on New York State law, employers must have compensation to cover their employees, and you have only a limited set of exceptions to this rule. As the employer, you must keep workers’ compensation to cover all the employees on the job. This includes the family members and employees that you have working on the job. We’re going to look at the penalties for not having workers’ compensation as well as the reasons that make this a good idea.
When you receive penalties from the New York Workers’ Compensation Board, it can feel quite daunting and even scary. The penalties range anywhere from criminal liability to significant monetary fines. Even worse, you could receive an order that forces you to close your business. When you receive a notice, you must take action immediately because the consequences can be real. Having a lawyer to handle these circumstances are essential if you want to receive the best results.
Based on Section 52-5, employers could face fines that reach as high as $2,000 for every 10-day period that you were non-compliant. You don’t have to think too hard to realize this can add up fast, and you must take action to protect your life savings and your business.
When you look at Section 52-1, you see how non-compliance can lead to criminal consequences. For example, an employer who had fewer than five employers might face a misdemeanor and a fine of between $1,000 to $5,000. These fines compound with the ones from Section 52-5. For employers who had more than five employees, they could even face a Class E Felony, which could be a fine of anywhere from $5,000 to $50,000, and this doesn’t include the fines from Section 52-5. Any subsequent violations will result in a Class D Felony, and they will face fines of no less than $10,000 but no higher than $50,000.
The New York Workers’ Compensation Board has the right to issue a Stop Work Order to all businesses that fail to remain compliant. Based on Section 141-a, this could sound the death knell of a business.
Based on Section 51-1, employers who have misrepresented their payroll records could face as much as a $2,000 fine for every 10 days that they failed to be compliant with it. In addition, this can lead to criminal convictions that become a separate punishment.
Any employer who doesn’t conspicuously post the C-105 form could have to pay additional fines that can reach as high as $250. When an employer doesn’t keep accurate payroll records, this can be a huge mistake that will cost him or her big. In fact, the employer could have to pay $1,000 for each 10-day period where they didn’t keep an accurate record. This could also turn into criminal liability.
Through Section 141-b, the employers who have filed to remain compliant with workers compensation coverage won’t be allowed to do public works projects. Certain types of businesses can especially run into problems with this because doing such work might make up a large part of their business, which can have devastating consequences if you relied on that type of work.
The consequences can be even more devastating if an employer failed to have workers’ compensation when an employee was injured. The employer will face legal fees and damages related to medical. In addition, the employee could decide to file a lawsuit that could be further damaging to the business.
If the Workers’ Compensation Board of New York has issued you a fine, judgment, or penalty, you should read through the notice carefully, but you should never respond to it in a way that will damage your case or make an admission. Instead, you should hire a lawyer immediately who has full knowledge over how to deal with these cases.
Lawyers have the ability to help through lowering the penalty against you. You have many cases of business owners who hired a competent lawyer, and they had the penalty lowered in a big way based on a technicality. If you have spent your whole life building up a business, you shouldn’t allow for New York State to take it away. As a small business owner who wears many hats and tries to keep the cost down, you absolutely must have a lawyer. That lawyer can save you thousands of dollars in fines and penalties.
Todd is a miracle worker who will work tirelessly for you and your family. He is one of the few attorneys i've met - who I earnestly trust to protect me, and who I am happy to refer to our friends and fellow family members. The Spodek Law Group is someone you want on your side, because they will treat you just like family. Todd and his team are available 24/7, and they always answered our calls. Even when we were being irrational, and crazy - they were calm and super helpful. Just call Todd. He gives you a free consultation and is very understanding.- Donna & Robert
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